Some may question the importance in creating a restaurant schedule for their employees, how it would affect the business if not done right and how to go about creating staff schedules. Creating a restaurant staff schedule is tricky as Employers/Managers have to ensure that there is a balance of working hours for your staff (Full-timers and Part-timers) to ensure fairness, to minimize headcount needed (to reduce manpower costs) and to also take into account of the volume of customer in the F&B establishment.
Getting ourselves warmed up, Employers/Managers must remember this key essence when creating schedules for the week.
Part-time employment: No more than 35 hours per week
1. Why is there a need for a restaurant schedule?
The restaurant staff schedule, AKA Duty Roster is a MUST in F&B businesses. Your staff need to know ahead of time when they will be working and the establishment needs to be adequately staffed to meet customer demands. Ideally, it should balance out the different skills of each employee, and also manage employees' productivity. Poor scheduling of the duty roster may result in an increase in customer complaints, workplace stress, lower productivity, and reduced employee morale.
You should also take into account peak and lull periods, and that weekends and public holidays usually mean more hands on deck. Orchestrating a restaurant staff schedule is usually the responsibility of the manager and head chef, but F&B owners should be aware of how they are making these scheduling decisions.
2. How do we ensure poor scheduling does not happen?
Most employers plan their restaurant schedule weekly to reduce the number of changes to be made.
Here are a few things Employer/ Managers have to consider when creating schedules:
Peak Period Projections based on sales - Employers/Managers can look at the experience of their staff. Place experienced staff during peak hours like lunch periods to prevent workflow issues. Placing too many new staff on the same shift may result in the lack of coordination, especially during busy periods. A team leader, supervisor or manager should be present at every shift.
Time off request - Employees work 6 days a week and according to MOM regulations, Employers must provide 1 off day per week. Employers can spread employee's time off over the week and they cannot compel employees to work on their rest day. Exceptions can be made when the restaurant is really understaffed and the staff on duty are unable to cope. In this case, the Employer has to provide employees another day off to make up for it.
Click here to calculate rest day pay if employees work on their rest day.Staff availability - Before creating schedules, Employers should consider staff’s requests for time off before allocating them working days.
Send schedules before the start of the week - Send schedules in on Friday/ Saturday night so that employees can prepare themselves for the week ahead and make personal plans on their rest day.
3. Lunch/Dinner breaks
Typically, a full shift lasts 11 -12 hours a day, from opening to closing (It depends on the opening hours and closing hours of the F&B establishment) and Employers must provide a break time for employees who continuously work up to 8 hours a day. Meal time breaks should last at least 45 minutes. The number of hours for break time differs from each individual F&B establishment as it depends on how much time the Employer/Manager allocates. In an F&B setting, meals (sometimes known as staff meals or family meals) are commonly provided for everyone working on that day and staff should inform chefs beforehand if they have any dietary restrictions.
4. Full / Part - Time Employment
Full-Time
Full-timers refers to employees working 6 days, ≤ 44 hours per week. Employers can put in place the “Give and Take Basis” rule to ensure fairness to employees: there are times full-timers can get their requests 1 off days for the week, and times where their request cannot be granted. Requested off days cannot be guaranteed as the manager has to take into account other staff’s schedules and preferences too.
On days that the employee does not turn up for work, Employers can calculate the incomplete month’s salary here.
Part - Time
Part-timers refer to employees working under 35 hours per week which also means that they have more freedom in choosing the duration and number of days they want to work. Jobs performed by part-timers include serving, bartending, and cashier duties. Employers pay part-timers by the number of hours and days they work per month.
Employers can use this to calculate their staff hourly basic pay.
5. Steps to creating a schedule
Below is an example that Employers/Managers can follow if done traditionally:
Step 1: Lay out the schedule format
Pull out an excel sheet, list down the dates for the week, names of employees according to their job scope at the side in alphabetical order. It is easier for staff to view their schedules when it is organized in columns.
Step 2: Identify staff count needed for each shift
Plan the schedule based on peak period projections, time-off requests of employees.
Typically, staff would come in prior 30 minutes to 1 hour before the opening hours of the cafe/restaurant to prepare everything needed for lunch service. This must be made clear to all staff to ensure that they turn up for their work on time. The time listed in the staff schedule should include the preparation time. (E.g. OMONI cafe operating hours start at 9 am. The schedule should indicate that work begins at 8.30 am.)
New staff have to be taught/trained in order to understand the operations of how the F&B establishment works. As such, Managers have to turn up 30 minutes before the time on schedule to teach the new staff on the ropes of the F&B business operations - Menu, Table arrangement, Greeting of customers, Serving of food etc. New staff can come in 30 minutes before the time on schedule to familiarize themselves, get to know the menu, how to serve the customers, understand table arrangements in the F&B outlet.
Based on the size of the F&B business, different numbers of staff are required. One example we can use is a small cafe - Peak period: Lunch crowd. Employers/Manager planning schedules must ensure that there is at least 3 staff on duty for the opening - 2 back of house crew doing preparations in the kitchen, 1 front of house to set up tables and the POS system. For peak periods, it is recommended to have 6 staff on duty- 3 in the back of house, 3 in the front of house. For non-peak period, you can reduce your number of staff to 4 - 2 back of house, 2 front of house. This can help to minimize your manpower cost.
Step 3: Calculate the number of hours
Creating a schedule is important as it helps employers to manage the payroll process. Schedules are used to track and determine the number of hours an employee works and Employers/Managers use it to determine how much to pay the employee based on the number of hours logged in.
Employers/Managers have to check and calculate the number of days and hours set for the employees - Full-timers must not exceed more than 6 days, 44 hours and Part-timers must not exceed 35 hours per week. If a full-time staff’s working time exceeds 44 hours per week, Employers/Managers have to amend it as the extra hours will be counted as overtime and have to be paid at 1.5x. Since 30-40% of the restaurant revenue usually goes to manpower,it is important to ensure that the number of hours employees worked fits within the manpower budget. All salaries will have to fit within that range so it will provide the Employer/Manager an idea on how much they can set aside for part timers. If the budget is exceeded, the restaurant would not be making enough profits.
To increase the efficiency of scheduling and payroll calculations, a Human Resource Software can be used. It will allow employers to monitor employee attendance, number of hours worked, off days and medical leave, and even CPF calculations. Instead of putting in requests for days off on Whatsapp group chats, which can be messy when keeping track and open to dispute, and having to send the schedule to each individual, everything can be updated and accessed via an app so both the management and employees are on the same page.
Below is an infographic that summarizes on how to create a restaurant schedule:
In essence, the process of creating employees' schedules might be tricky but spending time to understand and create a staff schedule will aid in better operational efficiency of your F&B establishment, managing your employee's attendance, and providing better service to your customers.
This article is written in collaboration with HRMLabs, an HR system for SMEs, that streamlines attendance-taking, shift-scheduling, leave management, and more.
Caroline Yap is the editor and intern at iCHEF Singapore. She manages iCHEF Club, a growing community of F&B owners in Singapore – organizing events, an online newsletter, and the F&B Entrepreneur Bootcamp, the only regular workshop on opening a new restaurant in the country. In her spare time, she loves drawing, painting, and creating new visuals. Her love for Korean food runs deep such that you can spot her at any famous Korean Restaurant in Singapore.
Understanding the rules and regulations before hiring employees is vital to ensure that you do not place yourself in a precarious position. Employees are the face of your F&B business as they are how customers view your “brand” as a whole. As such, investing time and effort in your hiring process can bring your F&B business to greater heights and minimize staffing issues.
Here’s an overview of the rules and regulations:
Legal Age restrictions for:
SG/PR’s: 17 years old
Foreign workers: 18 years old
Working hours:
All FT/PT can only work for 6 days a week, not more than 44 hours per week
Validity of employment passes for foreign workers:
1-2 years, A levy will be charged on employees for S and work permit employees
To find out more, you can read it here.
Steps to Find Great Employees for Your F&B Business
1. Job Postings
There are various ways for employers to find their potential employees. Before advertising on job posting platforms, employers should draft out and create an employee profile to determine the types of employees you want to hire.
The employee profile should consist of:
Experience needed to fulfill the requirements of the job
E,g. Managers, Chef roles - Proven F&B management experience through certificates or through past experienceTraits required for the role
When hiring front of house employees, it is important to look for the one that has great soft skills and attitude. Front-of- house also refers to staff that represents the “Face” of the company and they perform Managerial , Bartending, Waiters/Waitressing, Cashiering roles.
E.g. A Manager role - Patience, Ability to hide their moods, Teamwork, Good Communication skills, Able to resolve problems efficiently.
Click here to find out on the skills framework for front of house staffWhen hiring Back-of-house employees, it is important to look for people with BOTH soft and hard skills. Back-of-house refers to staff who work in the kitchen and normally, customers do not see them. Such roles include Cook, Commis Chef, Dishwasher, and etc. roles. Soft skills here refers to teamwork and communication skills, while hard skills refer to the relevant cooking and baking skills.
E.g. For a Chef role - Creativity, Attentive to details, Organizational skills, Able to work for long hours
Click here to find out on the skills framework for back of house staffCore values of the employee - If core values of the applicant coincides with the F&B business, chances are that the person will be willing do their best for the business
After identifying the criteria of your future employee, you can now work on creating job postings.
Once job postings are completed, Employers/ Managers can use these job posting platforms to find employees::
Gumtree
JobCentral
JobStreet
Monster
YY Part Time Job
Facebook (on your Business page)
Telegram (@sgcareers, @singaporeparttimejobs, @sgjobsspace_hotelfnb, @sgparttimers, @sgquickjobs)
Other than the platforms listed above, employers can use social media (Facebook and Instagram) to source for their potential employees.
For example, Most of the Stickies Bar staff are youths and young adults. As such, to gather their applicants for hire, they have opted for social media as a platform. Such platforms are Facebook, Instagram, Telegram which are popular among many young adults.
Referred candidates usually turn out to be more reliable – so you should consider referrals from friends, family, and colleagues.
2. Conducting Interviews
Moving onto the next step which is to select the right person for the job. Book an appointment date and arrange a meeting to speak to the selected ones.
This can be done at the F&B outlet or through an online platform such as Zoom/Skype. During the interview, it is important to tell the prospect hire of the company culture - How does the company function, the goals and mission of the company etc. This would provide an overview for the applicant to know what they are getting themselves into which can help in deciding whether their goals align with the company.
Questions Employers can ask when hiring
When hiring managers, Employers can ask questions such as:
Have you participated in opening a new restaurant, and if yes, what was your role?
How would you handle a dissatisfied customer?
How do you balance quality and minimize costs for the restaurant?
Tell me a time where you had to deal with a stressful situation and how did you overcome it?
Hiring a pastry chef, Employers can ask questions such as:
“ What are your past experiences as a pastry chef?”
“ Why do you want to work for Rad Bakery as a pastry chef?”
“ What are your expectations that you set for yourself?”
Employers may also request chefs to demonstrate their cooking skills which allow employers to observe the way they work and then taste the food that they prepared to determine if he/she hits the mark.
Through evaluating their previous experience, body language, and responses from the candidate, employers can determine if the person is suitable for the job. Besides that, it is important to note that employing based on skills is as important as having the right attitude, the willingness to learn and taking up new challenges.
3. Hiring of employees and Signing of Contract
After selecting the right person for the job, invite them to the F&B outlet and speak to them.
To avoid miscommunications from occurring, Employers must clearly state:
The Job Responsibilities, Dress Code, Vacation, Annual Leaves, and Remuneration
The starting date for the employee
Benefits agreed upon the employer (Health insurance, free staff meals)
Beyond technicalities, Employers can speak to the new hire on the company rules, hygiene rules, expectations they have for them and how the new hire’s work will be valued and how it can contribute to the team.
Signing of Employment Contract
Once the new hire agrees to accept the job, Employers MUST provide a contract for the employee to sign. To prevent misunderstandings from occurring, the signing of a contract must be done in person and NOT through an online platform.
The contract of employment must mention:
Appointment position
Working schedule
Probation clause
Job responsibilities
Remuneration package
Employee benefits
Code of conduct
Termination
*To read more about what goes into a written contract, click here
Once the contract is signed, Employers can welcome them onboard with the team and pass the work uniform for the new hire to wear on their first day of work.
You may save this infographic for easy reference:
4. Managing New Hire On-boarding and Team Expectations
New Hire On-boarding
Employers should introduce and provide the new hire an idea of the hierarchy of the team - Managers, Head Chef, Sous Chef etc.
By understanding the hierarchy of the team, it helps the new hire to :
1. Know who they can speak to if they have any questions/ when they encounter problems
2. Be respectful and familiarize themselves with their colleagues - this will be beneficial to the team and the F&B business.
Providing training
Employers may also provide training for the new hire by requesting them to turn up for work an hour earlier on their scheduled working dates to guide him/her on how the operations work in the F&B establishment. Some of such training include counter and table service, kitchen preparations etc.
(E.g. Opening hours of OMONI CAFE : 9 am, staff may be asked to report to work at 8 am to familiarize themselves with its operations and to help out with preparation work)
Employers have to monitor and track the employee’s training to ensure that the employee is benefiting from it and his/her skills has improved.
Managing Existing Team Expectations
Employers should never forget about his/her existing team – give a heads up to your existing team that you are hiring an additional helper to better prepare the team. This would not come off as a shock when the new hire turns up for work.
If the team and the employer has a group chat, he/she should add the new hire into the group chat and facilitate by introducing the new hire’s name, position in the restaurant, and his/her starting date to the team so that they can get familiarized with the new staff easily.
Employers can also allow and encourage their existing staff to voice out to them if there any concerns pertaining to the new hire's work performance, attitude along the way.
“Time well spent is an investment of the present for a practical and abundant future.”
All in all, allocating time and effort in finding the right staff for your F&B Business. It is vital as it not only allows you to increase your business efficiency, productivity, it also helps to retain your existing staff.
This article is written in collaboration with HRMLabs, a HR system for SMEs, that streamlines attendance-taking, shift-scheduling, leave management and more.
Caroline Yap is the editor and intern at iCHEF Singapore. She manages iCHEF Club, a growing community of F&B owners in Singapore – organizing events, an online newsletter and the F&B Entrepreneur Bootcamp, the only regular workshop on opening a new restaurant in the country. In her spare time, she loves drawing, painting and creating new visuals. Her love for Korean food runs deep such that you can spot her at any famous Korean Restaurants in Singapore.
If you’ve been to IMDA’s website looking for grants for your F&B business, you might be scratching your head trying to understand the difference between Digital Ordering, Online Ordering, and Online Food Delivery. These are terms categorizing IT solutions for F&B outlets, under the Productivity Solutions Grant (PSG), which allows you to claim 80% of the cost.
Although they sound similar, they actually serve different purposes and it’s important to know which is needed for your business.
1. Digital/ Online Ordering
Based on the descriptions and a survey of pre-approved solutions under the “Digital Ordering/Online Ordering and Payment” category of IMDA’s Productivity Solutions Grant (PSG), “Digital/Online Ordering” refers to newer ordering systems, or POS (point of sale) systems, that are cloud-based and use tablets to place orders.
While POS systems have been an essential part of F&B businesses for a long time, many of those on the market are traditional or legacy POS systems – essentially computers with POS software installed on them. They perform basic functions such as order recording, billing, and sometimes inventory management.
Digital/ Online Ordering POS systems are more technologically advanced and dynamic, allowing for regular updates to their software, remote management, integration with other software such as accounting, and more. They are meant for F&B businesses’ internal use and reduce the number of tasks done manually, increasing productivity at your restaurant. Some systems might allow customers to order with their mobile phones, by scanning a QR code or visiting a website URL. Once confirmed, the order is sent to the POS system. This is usually in addition to the standard tablet ordering mentioned above.
The Singapore government has encouraged F&B businesses to adopt Digital/ Online Ordering POS systems since 2018 by offering up to 70% subsidy (now 80% until 31 Dec 2020) on such solutions. Vendors providing Digital Ordering/ Online Ordering solutions with this subsidy have to undergo a strict qualification process to be pre-approved under the PSG.
iCHEF POS system is an example of a PSG pre-approved Digital/Online Ordering POS system. It is able to perform tasks such as ordering, billing, inventory, tracking of sales, and employee management.
Pros and Cons of Digital/Online Ordering
Pros:
Lightweight – Typically smaller and sleeker than traditional POS systems
Accessible anywhere – Being cloud-based, you can easily view your sales and other reports on any device that is connected to the Internet.
Flexible – You can make changes to your menu, edit prices, and manage promotions on your own without any help from tech support.
Safe – Because your data is backed up on the cloud, you don’t have to worry about hardware breakdown. It can be easily retrieved when you log in on a new device, unlike traditional POS systems where your data is lost if your hardware is damaged.
Cons:
Requires Internet connectivity – Some systems might not function if the WIFI connection is interrupted. Check with your POS provider if their system has an offline mode or if the system can continue to operate without an Internet connection.
Hardware cost – Most Digital Ordering systems use Apple iPads, which are more expensive than traditional POS hardware. This is because iPads are more reliable and there are dedicated Apple tech support and repair. However, with the PSG, Digital Ordering solutions have become a lot more affordable!
Grants claimable for Digital/Online Ordering
Productivity Solution Grant
Claim up to 80% PSG grant
Solution must be pre-approved by IMDA
Applicant companies must have 30% local shareholding
Yearly turnover of <$100 Million *PSG grant will be subjected to changes next year
Digital Resilience Bonus (DRB)
You can qualify for a $2500 bonus under DRB Category 1, if your F&B Businesses use all 3 of these software :
Accounting
HR Payroll
Digital ordering for Dine-in/ Takeaway.
iCHEF falls under the category of Digital ordering as such if you are adopting iCHEF POS System for your F&B Business, congratulations! You have fulfilled the criteria and you are eligible for the payout.
Click here to find out if your solution matches the solutions for DRB
2. Online Food Delivery
Online Food Delivery Not to be confused with Online Ordering, Online Food Delivery means customers use food delivery apps (such as GrabFood) or a restaurant’s online shopfront to order their food to be delivered to their location. More than just facilitating ordering, these platforms also deliver the food to the customer. According to IMDA’s website, this helps to increase engagement with existing customers and widen your customer base to untapped segments of the market.
Pros and Cons of Online Food Delivery Solutions
Pros:
Increase sales and operation efficiency - Instead of relying on walk-ins, F&B businesses are able to receive orders on food delivery platforms within the same time frame, effectively serving more customers.
Reduce potential errors for customer’s order - Customers select their own items and are responsible for their orders, so there is little room for confusion. This reduces human error, food wastage and additional cost for the business.
Widen its customer base - Having a third party application (food delivery platforms) can help F&B businesses to expose themselves to a wider pool of untapped customers who might not physically visit the outlet.
Predicting demand - Some food delivery platforms provide reports for F&B owners, which can be used to analyse customer ordering trends and if the customer data is available, send targeted promotions to customers.
Cons:
Delivery-related problems – Your delivery orders are subject to bad weather and traffic conditions. Inevitably, there might be a shortage of delivery drivers during peak periods and public holidays. These problems can be managed by preemptively informing customers of delays on special occasions, maintaining good customer service and addressing complaints immediately.
Commission payable – Food delivery apps such as Foodpanda charge up to 35% commission on orders, which significantly reduces profits for the F&B business.
In a Nutshell
Digital/ Online Ordering refers to cloud-based POS systems using tablets to take orders, whereas Online Food Delivery focuses solely on delivering food to customers using delivery platforms.
By differentiating these solutions: Digital, Online ordering and Online Food Delivery, you will be able to pick the right one for your business and apply for the right grant.
Cheryl Tay is the editor and marketer at iCHEF Singapore. She also manages iCHEF Club, a growing community of F&B owners in Singapore – organising events, an online newsletter and the F&B Entrepreneur Bootcamp, the only regular workshop on opening a new restaurant in the country. In her spare time, she attempts to read every book that’s ever won a literary prize and watches cat videos. Like any proper Singaporean, her love for food runs deep – especially spicy food. Chili is life.
This is a highly sensitive topic that most employers struggle with. As an F&B owner, you have to make difficult decisions that benefit the company as a whole. Besides that, it is vital to manage the emotions of the employee being terminated as well as the other employees.
Terminating employee employment should be every F&B employer's last resort after multiple reminders and warnings. While it is never easy to deliver the bad news, here are some tips to manage the process.
The factors of dismissal can be categorized under 2 categories:
Required to provide a notice period and Not required to provide a notice period
Required to provide a notice period
1. Performance
Before taking action to fire the employee, provide constructive feedback, training, and monitor their performance. If performance is consistently below satisfaction of what is required, you can dismiss your staff.
However, you must provide the employee with a termination notice period, which is based on what is stated in the contract agreement.
In the event no notice period is stated in the agreement, you can use this as a reference:
Click Here For More Information
2. Excessive and Repeated Absence
Excessive
The number of leaves taken per month must not unnecessarily disrupt operations of the F&B. Before taking steps to terminate employees, you can observe the employee for 3 months occurrence, before deciding whether to keep or discontinue the employee contract.
(The duration indicated here are not determined or recommended by iCHEF but rather indicators based on speaking with some Employers)
Repeated Absence
If the employee does not turn up for 2 consecutive days without notice or approval, employers may terminate the employee employment
Example: Jack is a sous chef in a small restaurant. Out of a 6-day work schedule, he reports to work 3 days and does not show up the remaining 3 days. Despite constant reminders from his manager, this behavior continues. As such, he is affecting the operational capacity of the restaurant and the morale of his colleagues.
3. Punctuality
If the employee is consistently late after multiple reminders and warnings, it should ring a red flag to the employer that this employee might not be suitable for the F&B industry.
Currently there are many HR Solutions that help to automate attendance. So you can also synchronize between payroll based on attendance, so you know the performance of employees.
Not Required to provide a notice period
For cases such as these, employees should be suspended until investigations are completed.
Termination due to misconduct
You have the right to terminate the contract without notice when the employee is found guilty of the following:
1. Theft
2. Insubordination
3. Bringing the company into disrepute
4. Violation of food handling policies and procedures
5. Sexual harassment
Example: Jack punched a customer when they got into an argument. Jack was given a chance to explain his actions but he was unable to provide any reasonable explanation. As such, he was dismissed for bringing the organization into disrepute.
2. Termination against foreign employees
There are extra steps to take when employees hired under S Pass or work permits who are facing termination.
Employers MUST cancel dismissed foreign employee’s work pass within 7 days of employment termination.
1. Tax clearance (E, S and Work Permit pass)
Employers have to:
Inform IRAS one month before dismissal of Foreign Employees
Determine if they have to seek tax clearance
After IRAS performs a clearance certificate (all taxes paid), Employers can then release salary payment (OT pay, allowance, reimbursement) to the employee.
To facilitate such payroll calculation, a Human Resource Management software may be used to automatically manage each employee’s details and payroll.
2. Buy an airplane ticket to send the pass holder back to their country of residence
Dismissed employee must depart within 14 days of pass cancellation
3. Preparing employees for dismissal
The firing of employees should never be done over the phone, text, and email – doing so would be unprofessional and allow for misinterpretations. It is also fair to your staff to have a chance to voice out what they are feeling.
Follow the steps below to ensure that the dismissal is a proper one:
Setting of employee expectations
Ensure that your employee is aware of the agenda of the meeting beforehand so that it does not come as a shock to them.Arranging of termination meeting
Ensure that the meeting place is private and not done in front of other employees. It is important to respect the terminating employeeTerminating the employee
1. Do not beat around the bush. Instead, go straight to the point and use simple words that can be easily understood
Example, “ Unfortunately, this will be your last day working with us,”2. Be transparent with the employee by stating the reasons why you are terminating their employment
For example, Jack, I am terminating your employment as:
1. Your attendance is poor and we have mentioned this a few times, and despite this there have been no improvements. This consistently violates our company policies.
2. We have had numerous conversations about your attitude and encouraged you to improve it but we haven’t seen you make an effort to change.
Sadly, we have to terminate your employment with immediate effect.Issue termination letter
It is mandatory to:Issue a termination letter to the employee
Provide a written letter, it cannot be verbal
Issue last paycheck
Generally, employers issue the last paycheck on the day of dismissal.
If that is not possible:
You MUST issue the employee last paycheck within 3 days from the date of termination
For example, Jack's contract was terminated on 14 August 2020. His employer has to pay him latest by 17 August 2020.
4. Managing the dismissed employee’s emotions
Treat laid-off employees with respect and dignity as it is bound for your employees to reconnect even after leaving your company. This helps to ensure a good relationship between the employer and the remaining employees in the company.
Be compassionate towards laid-off employees. For example, if your employee was laid off due to incompetence, employers can introduce them to options to pick up new skills.
5. Managing of other employees emotions
An abrupt dismissal of an employee may open doors for other employees to speculate on the reason. As such, it is important to communicate and send a clear message to the other employees.
To avoid that from occurring, employers should:
Have a team meeting to address the issue
Be careful with the words used so as to not defame the dismissed employee and explain the reason for the employee’s termination
Ensure that the dismissed employee’s job is being covered
Be receptive to employees’ questions and concerns
Reinforce the restaurant’s expectations and policies
Praise employees who performed well
“HANDLE IT RIGHT”
Being honest with the laid-off employee is vital as leaving them with unanswered questions about their dismissal will result in you being suspicious on wanting to cover it up. This process will take a long time but you will have to handle it right to ensure no hard feelings are left on both parties.
This article is written in collaboration with HRMLabs, a HR system for SMEs, that streamlines attendance-taking, shift-scheduling, leave management and more.
Caroline Yap is the editor and intern at iCHEF Singapore. She manages iCHEF Club, a growing community of F&B owners in Singapore – organising events, an online newsletter and the F&B Entrepreneur Bootcamp, the only regular workshop on opening a new restaurant in the country. In her spare time, she loves drawing, painting and creating new visuals. Her love for Korean food runs deep such that you can spot her at any famous Korean Restaurants in Singapore.
Singapore being a gastronomical country, is well known for its eateries. Everyone wants to be a boss and many would scratch their heads and ask questions like “ What roles does my F&B business need? “How many employees should I hire for my F&B business?” “How much do I have to pay my employees?”
Fret not, we will be guiding you along the way so sit back, relax and read on to solve those burning questions in your minds! Let’s start with the employees that an F&B business would typically need to operate smoothly.
Employee Roles and Salaries
High-end restaurants with specialized skill requirements may offer higher salary scales. The salary ranges indicated here are not determined or recommended by iCHEF but rather indicators based on these sources: Gumtree, Trabajo, JobStreet, JobCentral, Indeed, Glassdoor
2. Payment of Salaries
Employers must pay their employees once a month for their service.
Salary must be paid:
1. Within 7 days after the end of each salary period.
2. For overtime work, within 14 days after the end of the salary period
There is no minimum salary for Singaporeans/ PR. However, it is important to bear in mind that there is always a demand for local F&B employees so the salaries you offer have to be competitive.
On the other spectrum, there is a minimum salary for foreign employees.
The minimum salaries are as follows:
Employment passes: S$3,900
S passes: S$2,400
Work Permit passes: S$1400
Employer CPF Contributions are only applicable to Singaporeans and PR. Employers are required to contribute their monthly share of CPF on top of their employee’s CPF.
The contributions for CPF are based on the employee’s age and total wages earned for the month.
F&B businesses fall under the private sector, as such below is the CPF contribution rates table for all F&B’s to take note of:
Example:
Jacob’s age: 20 years old.
He earns a total of S$600 per month as a Barista. As such, his employer has to contribute 17% of $600 which is S$102.
To better manage your employees salary and CPF, you can consider adopting a human resource software that will ease the steps required for payroll management.
3. Consequences of Inflating Salary and Not paying CPF
Inflating Salary: Fine up to S$20,000 per offence
Not paying CPF (First-time offence): Fine up to S$5,000 and/or up to 6 months imprisonment
Inflating Salary
It is against the law to inflating salary to secure foreign passes and the employer will be fined if found guilty. Employers MUST pay their employees based on the agreed sum in the contract
Not paying CPF
If employers do not pay their employees (SG/PR) CPF, there will be:
18% Interest charged starting from the first day of the following month after contributions are due
First-timers: A fine of S$5,000 and/or up-to 6 months imprisonment
Repeat offenders: A fine of S$10,000 and/or up-to 12 months imprisonment
If employers deduct employee share of CPF but fail to submit, the employer will receive a fine of up to $10,000, and/ or imprisonment of up to 7 years.
4. Applications of employee roles in F&B establishments
Putting what we have mentioned above together, let’s apply it to some F&B establishments.
Cafes
To run a sizable cafe serving freshly prepared meals as well as coffee, you would need to have an average of 10-15 staff to operate smoothly.
Here is the breakdown: 1 General Manager, 2 Supervisors, 1 Executive Chef, 1 Sous Chef, 1 Cook, 2 Service Staff, 1 Part-Time Dishwasher, 2 Barista
Restaurant
To run a restaurant, you would need to have an average of 15-25 staff to operate smoothly.
Here is the breakdown: 1 General Manager, 2 Restaurant Supervisor, 1 Head Chef, 1 Sous Chef, 3 Cooks, 3 Service Staff, 2 Dishwashers, 2 Barista/Bartenders.
“TOO MANY COOKS SPOILS THE BROTH ”
To sum it up, I would like to end with this principle of “ Too Many Cooks Spoils The Broth”. New F&B owners need to understand that getting the right amount of employees required for your F&B business is sufficient to operate their F&B business. Also, remember to pay your staff on time, else you won’t be spared from fines coming your way!
This article is written in collaboration with HRMLabs, a HR system for SMEs, that streamlines attendance-taking, shift-scheduling, leave management and more.
Caroline Yap is the editor and intern at iCHEF Singapore. She manages iCHEF Club, a growing community of F&B owners in Singapore – organising events, an online newsletter and the F&B Entrepreneur Bootcamp, the only regular workshop on opening a new restaurant in the country. In her spare time, she loves drawing, painting and creating new visuals. Her love for Korean food runs deep such that you can spot her at any famous Korean Restaurants in Singapore.
We heard from you! We know that there are tons of MOM regulations F&B businesses have to abide by, so we created the complete guide of MOM regulations for F&B. In this comprehensive guide, we will touch on employment regulations and what goes into an employment contract.
First things first, let’s lay the foundations of what YOU need to take note when hiring employees for your F&B business. Let’s hop into the key features of the Employment Act.
1. Full-Time Employment
Full-time employment in F&B refers to employees who are service professionals and is required to work no more than 6 days, 44 hours per week. Full-time professions in F&B are titled as General Manager, Executive Chef, Head Chef, Waiter/Waitress position. He/She will be receiving company benefits such as staff meals, discounts, and more.
MOM Age Regulations
As legislated by MOM, the legal age to work in Singapore is 17 years old. However, F&B owners are allowed to hire youths from the age of 13 years old.
Youths between 13 years old to 15 years old are NOT allowed to handle kitchen equipment (eg, Fire stove, Ovens, etc).
2. Employment of Foreign Workers
Foreign Workers Age Regulation
Employers must ensure that foreign workers aged are 18 & above to be eligible to work in Singapore.
Besides that, they can only work up until the age of 60.
Before proceeding with the signing of the contract, Employers have to ensure that:
Workers possess a valid work permit before the commencement of duties
Only work for the employer and the agreed job scope stated in the contract (No moonlighting)
The 3 types of employment pass that are eligible and F&B owners can look out for are:
The validity of all passes last for:
1-2 years (Can be renewed after expiry)
For every S and Work Permit pass workers that you hire, a levy charge will be imposed.
*Disclaimer: The more foreign workers you hire, the higher levy charge you will face
3. Part-Time Employment
Part-timers can supplement your workforce. Jobs commonly performed by part-timers are serving, bar-tending, etc which can help to increase efficiency for an F&B establishment.
Below are a few regulations that F&B employers should take note of:
Part time employees are under the contract employment to work < 35 hours per week.
One way to manage staff’s schedules to ensure their hours are within this scope is to use a HR management system.Part-timers are entitled to overtime pay/ public holidays pay of 1.5 times their normal hourly pay.
For example: Jane earns $8/hr on a normal day, however she worked on Hari Raya Haji, thus her employer must pay her $12/hr for that dayEmployees are to provide part-timers with at least a 1 off day per week
4. Full-Time/Part-Time Contract
Each FT/PT Employee Contract must contain in the following order:
Appointment position
Employers may start with stating the employee position that he/she may be holding.
For example, Jack will perform duties of an head chefWorking schedule
This consists of the number of days and hours the employee is required to work.
For example, Number of working days and hours per week: 6 days, 44 hours per weekProbation clause
Employer may include a probation clause to ensure that the employee is suitable for the role
(Probation can last up to a year)Job responsibilities
Employers must include this so that it will be clear for the employee to perform his/her duties.
For example: Jack will have to construct new menus, assist his staffs in meal preparation, report to management in Jonus KitchenRemuneration package
Under this package, it will include salary, bonus, leave, overtime, public holiday pay etc.
Employers will have to:
5.1. State the salary rate, and the date for the first paycheck
5.2. Include a statement reflecting the need to pay for Central Provident Fund (CPF) as required by the law.Employee benefits
Employee benefits can consist of provision of meals, healthcare, staff discounts etc.Code of conduct
Employers are to clearly state their values, regulations and expectations of how their employees should perform on their job.
Termination
Employers must include the duration of notice that the employee needs to provide in the event of terminating their employment.For example: After 1 month of service, Jack is required to give the 1 month’s notice to terminate his employment.
Click here for the sample of employment contract
Phew, it was a long yet fulfilling guide one isn't it? We have come to the end of our Comprehensive Guide on MOM regulations. Remember to provide your monthly CPF for your employees, follow the rules and regulations to avoid any penalty from the government!
This article is written in collaboration with HRMLabs, a HR system for SMEs, that streamlines attendance-taking, shift-scheduling, leave management and more.
Caroline Yap is the editor and intern at iCHEF Singapore. She manages iCHEF Club, a growing community of F&B owners in Singapore – organising events, an online newsletter and the F&B Entrepreneur Bootcamp, the only regular workshop on opening a new restaurant in the country. In her spare time, she loves drawing, painting and creating new visuals. Her love for Korean food runs deep such that you can spot her at any famous Korean Restaurants in Singapore.
More than just PIC and ICV. Opening a restaurant is expensive – thankfully we have some government grants and subsidies that make it a little easier to bear.
iCHEF makes online ordering possible for small F&B businesses with 0% commission per order
Since circuit breaker measures kicked in on April 7, F&B has been one of the hardest-hit industries. It is at a time like this, when dining in is no longer possible and public spaces are virtually empty, that F&B businesses with other means of reaching their customers and generating sales will be at risk if it drags on for another 2-3 months.
Small restaurants are subsidizing technology for F&B chains
While big chains like McDonald’s can afford to close their restaurants during this time to safeguard their employees and still continue to pay them, small businesses cannot afford to close as they depend on income from their daily operations.
F&B chains have an unfair advantage over small restaurants when it comes to adapting to this situation. Most restaurant chains already have a digital presence in the form of a website and social media pages, and have the bandwidth to quickly implement online ordering. In most cases, they are already on board food delivery apps and featured prominently to ensure order volumes. On top of that, some chains can pay as low as a single-digit commission fee in contrast to the average 30% paid by other restaurants. This is at the expense of small restaurants. Additionally, food delivery apps favour speed and volume of order fulfilment, so chains with central kitchens that can easily ramp up production have the edge over small restaurants.
Graphic by ground-up movement #savefnbsg, a coalition of over 500 Singapore restaurants.
Stop-gap measures
Many local food businesses have turned to social media to promote their offerings, manually taking orders on Facebook messenger or Whatsapp. While these methods serve their purpose, it often takes between 15-30 minutes to confirm every order, a time-consuming process involving sending the menu, answering customers’ questions, confirming the items, arranging a delivery time and address, finding a delivery driver, and collecting payment. This often results in a slower response time to customers’ enquiries, sometimes even forfeiting orders as customers get tired of waiting for order confirmation and occasionally missed orders. Not to mention, the logistics of managing such orders on an Excel spreadsheet requires the full attention of at least one staff member at all times. This unnecessarily labour-intensive workflow makes it unsustainable in the long term.
iCHEF launches new online platform for small F&B businesses
iCHEF, a leading cloud-based POS software company, has been supporting F&B owners in managing their orders, customers, inventory and reporting with a single platform since 2015.
Hearing that many of their clients were forced to cobble together an online ordering process from scratch, iCHEF quickly built a FoodAcorn, a platform that allows F&B businesses to go online with minimal disruption to their current operating style. FoodAcorn builds F&B businesses their own online ordering website, where customers can browse their menu and order directly with the merchant.
No commission fees
Unlike food delivery apps and other online ordering services, FoodAcorn does not charge a commission on every order made. Instead, an average merchant pays a fixed subscription fee of $59/ month, compared to $5,400 on other delivery platforms (based on an estimate of 30 orders of $20 each per day at a 30% commission fee).
“Before Covid-19, when delivery orders make up a small portion of a restaurant's business, the high fees can be categorized as marketing cost and restaurants can accept it. When delivery makes up the bulk of a restaurant’s revenue, the 30% fees makes the business unsustainable.. Even after the circuit breaker is over, it may take at least a year before the world is free of all social distancing measures. Restaurants have to be prepared for the ‘new normal’ and adjust their business models to survive. That is what FoodAcorn was created for,” explains Jay Teo, international director of iCHEF.
The importance of cash flow
To help restaurants better forecast their orders, customers can pre-order and pay up to 7 days in advance, so F&B operators can order their ingredients accordingly and prepare. FoodAcorn prompts customers to make payment by PayNow for their orders to be confirmed.
But there is another reason why this online ordering platform uses PayNow:
“Restaurants are in need of cash flow now more than ever, and many third-party ordering sites charge a transaction fee and will hold the merchants’ cash for a period of time before transferring it to their account. The transaction fee and delay in payment double penalizes restaurants who use them. PayNow is an immediate cash transfer, so F&B businesses will have the cash needed immediately,” Mr Teo says.
Building a customer base for restaurants
One challenge with using food delivery apps, or any platform that aggregates restaurants for customers to choose from, is that restaurants do not have direct access to their customers.. Restaurants have no customer insights and no way of reaching the customer to get repeat orders. The food delivery app, on the other hand, owns that information and customer base. That is how they ensure that restaurants are reliant on their services for orders. Restaurants still have to pay the 30% commission even if the customers make a repeat order at the same restaurant.
With safe-distancing measures becoming the new normal even after the circuit breaker measures are lifted, restaurants can anticipate their dine-in capacity to be halved. Consumers will be more cautious with their spending and favour more affordable options. Disallowing gatherings means that ticket sizes will be smaller – F&B outlets can no longer count on higher spending per table when a group is dining, and have to think of how they can encourage individual customers to make smaller, repeated purchases. Having customers order directly from them, so that they have customer information, is crucial for creating a strategy for sustainable and repeated business.
To learn more about FoodAcorn and use it for your business, click below.
Until the whole world is free from Covid-19 virus, there will be measures put in place to protect against the next wave of infections. Being a global economy and so interconnected to many countries, Singapore will always be at risk of a sudden outbreak due to imported cases. Recently(1st May 2020), we have seen Singapore’s community spread reduced to 10-20 per day. With almost 1 month of the circuit breaker to go, with any luck, we may not extend it anymore and businesses can begin to open up. Here are some scenarios that are likely to happen and how it will affect your F&B businesses.
1. Social distancing in restaurants to be commonplace
Tables will likely to continue to be placed 1-2 meters apart which reduces seating capacity in restaurants by up to 50%. If your restaurant previously seats 40 pax, now with only 20 pax capacity, your dine-in revenue will be drastically reduced. Customers who come to your store will no doubt be disappointed that they are unable to get a seat. Others when they see the long queue will change their mind and dine elsewhere.
Possible strategies:
Encourage customers to takeaway, better yet, let them pre-order before collecting
Serve customers in their homes & offices through delivery/takeaway to sidestep the limited seating capacity
Redesign your menu to focus on dishes that are faster to prepare and consume
Give customers the option to reserve seats in advance(ideally with a deposit to reduce no-shows)
Change your floor plans to remove excess tables and make more space. Consider the most efficient path for customers to order and pay
Social distancing will reduce restaurant seating capacity to 50% or less
2. More restrictions & checks in public places and malls
Crowded places will be managed with checkpoints and registration to control the number of people. Footfall will be reduced as consumers avoid malls and other public places. If your business previously depends heavily on foot traffic, you will have to change your business model to reach people in their homes & offices.
Possible strategies:
Reach out to your customers through social media or advertising your business online
Focus on fulfilling orders through delivery to homes & offices
Use delivery platforms as a marketing channel and redirect customers to order directly from your own online storefront to reduce commissions
Source for sustainable packaging materials to build a positive environmental brand image
3. Some offices will continue to implement partial flexi-place arrangement
After more than 1 month of working from home, some businesses will continue to allow employees to work from home for some of the days. Business owners may continue to split their employees into different teams and stagger office work to reduce risk. Others may see the benefits of telecommuting as an alternative to doing business. The number of walk-in customers is likely to be reduced as a portion of diners will continue to be at home. However, demand for home delivery will see an increase.
Possible strategies:
Test which of your dishes deliver well and streamline your menu to offer the ones that do.
Implement contactless pick-up for drivers to collect from your restaurant instead of entering the premises
Be creative with your offerings, for example, ready-to-cook dishes for customers to finish up final steps at home with their families
Consider your profit margin if you are only using 3rd party delivery platforms
Use your POS’s CRM (customer relationship management) to collect your customer’s info to entice them back again
4. Corporate orders & catering business on ice
As large scale events and gatherings will continue to be postponed due to the high-risk nature of the infection, this significant portion of F&B spending may not resume to pre-COVID 19 levels in the short term. If your business relies heavily on such corporate orders, you may need to consider becoming more consumer-friendly and think about reaching out to a large number of individual customers. Your ability to reach new consumers becomes the key to survival.
Possible strategies:
Switch your catering trays for eco-friendly takeaway boxes. Create brand-specific branding on all boxes
Repurpose your catering delivery vans & drivers to deliver to homes
Create a new consumer-facing virtual brand that is easier to connect with
Acquire new digital marketing capabilities in your team. They should know how to create designs, run advertisements, create new and engaging content
Think about designing the customer experience from seeing your brand, understanding your offerings, making a decision, ordering from you, anticipating your arrival and consuming your food
5. Consumers will tighten their wallets
With a gloomy economy on the horizon and uncertain job security, consumers are more likely to be budget conscious and watch their spending. A strong brand and unique experience may help to mitigate the impact. In most cases, the willingness to pay will reduce in most consumers and they will seek out more value for money options.
Possible strategies:
Reduce your menu to eliminate dishes that have low order rate(% of orders) and low-profit margin. Use your POS data to analyze and identify which dishes to keep and remove.
Use your inventory system to identify your high food costs and wastage dishes. Remove or redesign them.
Take steps to evaluate your suppliers and purchasing frequency to ensure quality & freshness of produce.
Create new dining experiences to engage different senses. Eg, video of the dish prepared in a special manner
Deliver unexpected service surprises to create memorable talking points. Eg. free side dish just because a customer has a beautiful smile
6. Customers will be more sensitive to hygiene
A heightened sense of hygiene will persist in the mind as consumers start to head out. Messy or untidy premises will give an impression there is a lack of care and impact consumer’s perception of your brand. Customers will also judge your food handling staff if they do not wear their gloves or masks properly.
Possible strategies:
Ensure sufficient gloves, face mask and shields for all staff. They should also be worn properly eg. Face mask to cover nose at all times
Keep all boxes and ingredients hidden and out of sight
Ensure hand sanitizer and wipes are readily available without having to ask for it
Give customers a way to keep their mask clean while dining at your restaurant. Little things like these matters
Clean and sanitize tables after every diner. Customers waiting in the queue will scrutinize how that is done
Give customers a way to keep their mask clean while dining at your restaurant. Little things like these matters
“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change” - Charles Darwin
The world is not going to look the same after the circuit breaker is over. What you do now to adapt and prepare will determine if your business will recover strongly or struggle for the rest of the year. Many of iCHEF’s F&B customers are affected by these measures and we are here to help.
iCHEF POS - Cloud based POS system with smart data analytics and reporting capabilities. Up to 96% grant support and additional 4 months free during circuit breaker.
FoodAcorn - F&B online ordering system to bring your food business online. Start selling to more customers from S$59/mth
iCHEF F&B Consultancy (NEW) - Design & build a virtual brand to reach new customers. Leverage technology and data to connect online to offline. Get up to 90% grant and salary support. Contact us to find out more
Reduce your F&B manpower costs with Enhanced Training Support
While most F&B businesses are aware of the wage support (JSS) being provided by the Government, few are taking advantage of the additional support from SkillsFuture Singapore.
As eateries can only offer takeaways and delivery until 1 June, and now with beverage and dessert shops being told to close, your outlet may be a bit overstaffed at the moment – however no employer wants to tell their staff they have to leave, especially at times like this. One way to keep your staff employed is to send them for training.
Subsidised training
In order to help sector-specific SMEs like F&B during this period, the Government introduced Enhanced Training Support of up to 90% of course fees when employers sponsor employees to attend courses by SkillsFuture. This covers eligible courses with commencement dates between 1 April and 31 December 2020.
Keep staff employed
As employees attend these courses, companies will receive enhanced absentee payroll support at 90% of the employee’s hourly basic salary, capped at $10 per hour. So while employers will still have to pay a nominal sum for courses, they can benefit from absentee payroll support and reduce their manpower costs. You can calculate your employee’s hourly basic salary here.
On top of that, your staff will be equipped with new skills which can be put to use when business returns to normal.
How to qualify for Enhanced Training Support
SMEs must meet all of the following eligibility criteria:
Registered or incorporated in Singapore
At least 30% local shareholding by Singapore Citizens or Singapore Permanent Residents
Employment size of not more than 200 (at group level) or with annual sales turnover (at group level) of not more than $100 million
Trainees must be hired in accordance with the Employment Act and fully sponsored by their employers for the course
Trainees must be Singapore Citizens or Singapore Permanent Residents
SMEs can submit applications and claims through the online SkillsConnect platform at www.skillsconnect.gov.sg. ETSS will be extended to those who meet the eligibility criteria. The application can be submitted up to 30 days before the course start date and no later than 30 days after the course start date.
Subsidised Course Fees
It’s important to note that training support is up to 90%, so not all courses are subsidised equally. SSG has stated that the subsidy is for priority deep-domain skills (like culinary arts, process innovation) and emerging digital skills. Those by approved training partners such as Asian Culinary Institute, NTUC LearningHub Pte Ltd, SHATEC Institutes and Temasek Polytechnic will be subsidised by 90%.
Some examples of courses you can choose from
You can send service staff for Growing Customer Satisfaction and Service Quality in F&B by Republic Polytechnic
Your sous chef or cooking assistants can go for Prepare Mise En Place (Pastry) by Asian Culinary Institute
Supervisors can attend WSQ Manage Service Performance by NTUC LearningHub
And you can send managers/ supervisors for Surviving & Thriving In The Isolation Economy: Business Model And Technology Innovation by SMU
According to this article, the full course fee is $1,712, but with government grants or SkillsFuture credits, Singaporeans pay as little as $113.60.
How will courses be conducted amid the Covid-19 situation?
SSG has announced that all courses will be held virtually, except for courses that apply to sectors severely affected by Covid-19 (e.g. tourism, aviation, retail, food services, land transport, arts and culture) that require in-person training.